Hey guys
I need to buy a new car since we just had a baby and my 2 seater truck won’t cut it much longer once the wife is done her Maturnity. The dealer I want to get the car from won’t give me anything better than 5.6% interest over 84 months which i think is ridiculous. Car I want is about 50k. I got about 30k saved up but don’t really want to put it all towards a down payment. I was talking to my financial advisor yesterday and she thinks a HELOC would be a good way to go. Right now I can get it at 3.7% but that will obviously go up since it’s prime + 0.5% but that’s still almost 2% lower than what this dealer is willing to negotiate. Would it be a stupid idea to use a HELOC to purchase a car? I’m kind of intrigued by the idea as I can pay at my own pace while the wife is on Maturnity and when she’s back at work next March and can increase payments then in 2024 when our other car is paid off I can really hammer down the payments. I’d probably put around 20K towards the car so only using 30K of the HELOC. Also think I can get around 15K selling my truck privately which I could also put right towards the HELOC when it sells or invest somewhere else.
I need to buy a new car since we just had a baby and my 2 seater truck won’t cut it much longer once the wife is done her Maturnity. The dealer I want to get the car from won’t give me anything better than 5.6% interest over 84 months which i think is ridiculous. Car I want is about 50k. I got about 30k saved up but don’t really want to put it all towards a down payment. I was talking to my financial advisor yesterday and she thinks a HELOC would be a good way to go. Right now I can get it at 3.7% but that will obviously go up since it’s prime + 0.5% but that’s still almost 2% lower than what this dealer is willing to negotiate. Would it be a stupid idea to use a HELOC to purchase a car? I’m kind of intrigued by the idea as I can pay at my own pace while the wife is on Maturnity and when she’s back at work next March and can increase payments then in 2024 when our other car is paid off I can really hammer down the payments. I’d probably put around 20K towards the car so only using 30K of the HELOC. Also think I can get around 15K selling my truck privately which I could also put right towards the HELOC when it sells or invest somewhere else.